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Extending the Collective Approach to Children: A Rothbarth-Type Measure of Child Costs Consistent with Scale Economies and Parents Bargaining

Author

Listed:
  • Donni Olivier

    (THEMA, Universite de Cergy-Pontoise)

  • Bargain Olivier

    (University College of Dublin, CHILD and IZA)

Abstract

We extend the collective model of household consumption to account explicitly for child welfare and economies of scale. Each household member is characterized by specific preferences and the (unspecified) allocation process is assumed to be efficient. Following the principle of the Rothbarth approach, the identification of the children's share requires the observation of adult-specific goods. The share of household income accruing to children in this context o¤ers a new measure of the cost of children, i.e., it differs from the traditional approach in that it is compatible with economies of scale and parents' bargaining. We illustrate the method with an application on the French Household Budget Survey.

Suggested Citation

  • Donni Olivier & Bargain Olivier, 2011. "Extending the Collective Approach to Children: A Rothbarth-Type Measure of Child Costs Consistent with Scale Economies and Parents Bargaining," THEMA Working Papers 2011-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2011-06
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    File URL: http://thema.u-cergy.fr/IMG/documents/2011-06.pdf
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    References listed on IDEAS

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    1. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2014. "Household Choices and Child Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 137-185.
    2. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute of Labor Economics (IZA).
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    Cited by:

    1. Daniel Burkhard, 2015. "Allocation of Expenditures in Elderly Households and the Cost of Widowhood," Diskussionsschriften dp1503, Universitaet Bern, Departement Volkswirtschaft.

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    More about this item

    Keywords

    Consumer Demand; Collective Model; Rothbarth Method; Cost of Children; Scale Economies; Equivalence Scales; Indifference Scales.;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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